The Hall of Fame and Investor Relations
- stevenrubis
- Feb 8, 2024
- 2 min read
The Pro Football Hall of Fame and Investor Relations
Public company executives all wish to enjoy a Hall of Fame career.
These men and women are quite accomplished and expect to experience growth and success.
If investors are always one trade away from humility, then public company executives are always one decision away from losing out on a Hall of Fame career.
There are two primary ways public company executives miss out on a Hall of Fame career:
1. Making Decisions that Break Investor Mandates
2. Inconsistent or Poor Execution
Public company executives that make abrupt decisions that break investor mandates are going to churn the entire investor base in a week!
Management teams cannot take decisions around dividend policy or other major policy decisions lightly. Breaking investor mandates will result in a CEO or CFO being a first round bust.
To enter the Pro Football Hall of Fame, a player needs a strong track record that exhibits outstanding performance over an entire career.
A player like Peyton Manning is judged on Super Bowl wins, passing yards, and touchdowns thrown.
Similarly, public companies and public company management teams are judged on their execution each quarter.
Does management and the company execute on the underlying fundamental economic essence of the said company.
For example, if you are a Data Center REIT, are you putting up new leasing every quarter?
If you are an offshore oil driller, are you putting up new contracts and new backlog each quarter?
Professional management teams know there is a difference between taking any price to show execution and waiting for the best possible surge pricing.
Hall of Fame management teams recognize there is a balance between those extremes and executes on that balance each and every quarter. Establishing a track record over quarters and years.
Successful execution on the business combined with thoughtful financial expectations management will go a long way to putting you in line for a Hall of Fame career.
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